Even for people who do not have children, the desirability of the school district deserves to be seriously considered in making your homebuying decision. It might be a natural tendency for people who are looking for a home not to consider the performance of the school district where their new home is located. This can be the case for a single person not thinking ahead to having children, a young couple, or maybe a retired individual or couple.
Home Price Levels Are Influenced by the Schools
Many real estate agents claim that the school district in which a property is located is the main factor affecting the prices of homes in most areas or neighborhoods. Homes in the neighborhoods of better-rated school districts being sold for significantly higher prices than similar properties in other areas has become the rule in recent years. That is more frequently the case than in previous years.
The difference attributable to the performance of the school district is no insignificant matter, nor is it a theoretical abstraction. Homes that are located in higher-performing districts will be sold for up to 30% more than homes elsewhere. If you look at the median cost of a home in the range of between $180,000 and $240,000, the difference is significant. In places where prices are higher, naturally, there will be an even larger difference, but even where median prices are lower it’s still a definite difference in home value. Do the math.
Buyers Are Harder to Satisfy
In previous years, home buyers seemed to be only thinking about such factors as the property’s location near their work, places for entertainment, convenience, and possibly things like trees having nearby parks. Now, savvy buyers are more sensitive to detrimental factors such as being located in a school district that is less desirable, where the per capita education spending and scores are low. Homes located in such districts can well be hard to sell.
School Districts Create Real Value
In some desirable districts, even in a slow market, buyers are ready to bid up the price for homes with the top schools. This can cause inflation of housing prices. In a slow market it can cause homes to decline more slowly. This affects the listed price of any home in the area available for sale after the transaction. Smart buyers acquire school performance reports early in their search. They know it is In many cases, school reports are viewed as more important than neighborhood demographic information.
Boundary Line Uncertainty
No matter the condition of the market, any reason that might compel a buyer to buy a home in a particular neighborhood increases the value of the homes there. Real estate investors and homebuyers have to remember that the boundary lines of school districts can be changed at any given time, which can change the property values by a significant amount. In an established district that is near a new subdivision, for example, things could shift seemingly on a whim, on short notice, as population shifts or is projected to shift. In real estate, very little is guaranteed, and this does not exclude the school district in which the property is located.
This article was presented through your Colorado Louisville real estate specialists, Automated Homefinder.